Hike Shows its revenue of Rs. 19 Cr. in FY22 with its costs details. The pivot details shown by the company show a rise in the graph from Rs 13k in FY20 to Rs 19 Cr in FY22.
Breaking down the expenses incurred by the company in certain areas as Firstly, this sum also includes a Rs 14.9 crore equity-settled employee share-based payment.
The second largest expense was found to be marketing costs, which increased 6.7X to Rs 37.04 crore in FY22. Costs associated with information technology (consumables and consulting) increased by 10.4% to Rs 9.05 crore.
Details about Hike Shows its revenue Rs.19 Cr. in FY22 with its costs details
In FY22, the costs associated with servers and application content for video consumption decreased by almost 70% and 75%, respectively, to Rs 7.85 crore and Rs 1.59 crore. During the same time period, the company also recorded retainer ship costs totaling Rs. 4.51 crore.
Hike maintained the strict budgetary discipline to keep its entire expenditure growth to only 3%, coming in at Rs 140.4 crore in FY22 as opposed to Rs 136.2 crore in FY21. Scale expansion and steady costs also contributed to the company’s improved bottom line. In FY22, over FY21, its yearly losses decreased by 7.3% to Rs 118.7 crore (from Rs 128 crore).
Cash outflows from operations for the company increased by 16% to Rs 104.4 crore in FY22. During the year, its EBITDA margin and ROCE increased to -525.00% and -61.20%, respectively.
On a per-unit basis, Hike spent Rs 7.31 in FY22 compared to Rs 756.67 in the prior fiscal year to make one rupee. Furthermore, throughout that time, the unpaid damages totaled Rs 1,775 crore.
For its product Rush Gaming Universe (RGU), a web3-based virtual environment where users can play, compete, and win, Hike raised an unknown amount across two tranches since January of this year. The NCR-based company has currently completed eight rounds of fundraising totaling over $261 million.
The company is burdened by the losses it accrued in its messenger service, which led to a string of failures. Employees who have survived the subsequent years will only remember its unicorn moment, which occurred as recently as 2016. The company has entered yet another market where there is fierce competition from international competitors and erratic customer enthusiasm in its bid to capitalize on the growing interest in gaming. Making its historical history of stumbling fashionable for the new generation of gamers it wants to court will need a lot of guts. Hike’s job may have been made simple by persuading investors (again again).